BEWARE: FREE COMES WITH A PRICE

There has been some healthy debate surrounding Chris Anderson’s latest book, Free. I’d like to join in and give the world a definitive answer regarding technology’s ultimate impact on the pricing of intellectual property but I left my crystal ball at the track.

A not-so-subtle fact lost in this debate is that price is not the same thing as cost.

Every consumer decision - even those without a price attached - comes with a cost. Sometimes it’s time loss. Sometimes it’s a drop in status. Sometimes it’s a lack of convenience.  Sometimes, in the case of most free online services and applications, the cost is allowing yourself to be exposed to ads. Or having to deal with a lack-luster user experience, having to waste time digging for what you’re looking for. (Yeah, I’m talking to you, YouTube.)

There are thousands of free products and services available to the American consumer right now. Many won’t survive despite the to-good-to-be-true price.

Pricing models are important. But giving your product away doesn’t guarantee success. What’s more important is making sure the value of your product exceeds the costs to consumers (both monetary and otherwise).

Sometimes free costs too much.

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CREATING DISPOSABLE BRANDS

Today there are about two dozen compass iPhone apps sold at the iTunes store. With yesterday’s announcement of the new iPhone 3GS (with its built-in compass app), Apple has pretty much leveled the entire market. 

With the speed of innovation increasing every day, no brand is safe from being made obsolete overnight. 

Marketers work hard to build up brands over time. We nurture and invest in them. We promote their legacy and legitimacy. And we’ve bought into the notion that while trends may come and go, strong brands will always endure.

Perhaps that’s merely wishful thinking. 

Rather than focus on how to build an enduring brand, could it be more constructive to think about what might make your brand obsolete? What societal trends, if played out over a few decades, would spell disaster for your brand? What companies outside your category could easily enter and disrupt the current balance of power?

Better yet, why don't you determine the fate of your brand? Make it disposable. Decide how and when it should die. Plan to kill it and create a new one. Make speed of innovation your ally rather than your enemy. 

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MISS COMPETENCE AND MISS CONTROVERSY

The one thing that the whole Miss California dust-up has taught us is that controversy is powerful... sometimes more powerful than competence.

Her divisive statements forced people to take sides. It made those passionate about the issue speak up and join in the conversation.

Miss (long-forgotten) North Carolina was the most competent of the contestants. She left with the crown. But Miss California will be leaving with more speaking engagements and endorsement deals – for better or worse.

Being competent is rarely enough.

While I like to think that competence wins out in the long run, controversy does have its advantages. It’s like a magnet that attracts hordes of people while repelling others. As long as your business model doesn’t depend on appealing to absolutely everyone (and I can’t think of one that does), controversy can be key to bringing in new customers.

But then it’s up to competence to kick in and keep them coming back.

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WORDS WORTH REPEATING #2: DOROTHEA BRANDE

“A problem clearly stated is a problem half solved.” - Dorothea Brande

I don’t know who Dorothea Brande is. But she has a point. I think sometimes we’re so busy trying to solve the problems that plague our brands that we fail to take the time to do a proper diagnosis. You may have the strongest bow, most balanced arrow and the steadiest hand. But it doesn't do any good if you're aiming at the wrong target.

It sometimes requires millions of dollars to solve a business problem. But all it takes is a little time to make sure you’re actually solving the right problem.

I guess that’s why I like Ken Watanabe's book, Problem Solving 101. The book is really more about problem identification than problem solving. I also like that it was originally written for elementary students. So even if your market research budget looks more like milk money, there are simple things that can be done to get better at pinpointing what's holding your brand back.

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ESTABLISHING A GIFTING PROGRAM

Ever since Denny’s free breakfast give away, it seems like restaurant chains like McDonald's and KFC are falling all over themselves to give out freebies.

Let’s be honest. All these freebies are just glorified sampling. And samples are free. So I shouldn’t have a problem with them. But I kind of do.

Sampling is a negotiation. The proposition: you give me your time and consideration and I’ll give you a treat. All I expect in return is that you spend your money with me. Please? (You kind of owe me.)

Is tacitly guilting a person into doing business with you a sustainable model?

Rather than a sampling program, maybe consider a gifting program. Gifts don’t come with strings attached. The best gifts are unexpected. And they are a reward of sorts for being a good friend. Gifting asks for nothing in return.

Providing unexpected gifts to best customers can create a lot more goodwill and sustained growth than doling out freebies to complete strangers and deal seekers.

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No Time for Mediocre

Twelve Books is fairly new to the publishing scene. The interesting thing about Twelve is that they have chosen to only publish one book a month. They believe every book they publish should be a book that matters... a book that helps shape the way we look at our society. In just a few short years, they already have a nice track record.

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Stop me if you've heard this before

Everyone knows that guy who tells the same jokes all the time.  It doesn’t matter where he is or whom he’s with, he routinely pulls out his tried-and-true “killer material” which he hopes will evoke the same laughter as it did the first time around. 

There are three types of reactions:

1.) We can pretend we’ve never heard the joke and laugh as if we haven’t.

2.) Beat him to the punchline.

3.) Or, slowly and quietly dismiss ourselves from the conversation before the joke is finished.

All options make us uncomfortable and none make for a healthy conversation. Consumers mentally cycle through the same options when they hear a familiar brand say the same thing (or slightly “new and improved” version thereof) in the same ways it has before. 

Sadly, for decades most marketers have been instructed that the best thing to do for their brand is to say the same thing over and over again. 

What’s more important than using repetition to burn a brand into a consumer’s memory is giving them something worth remembering in the first place.  Real financial gains these days are being realized by a handful of what we call "Renaissance Brands" who consistently redefine their product offering, service approach, and marketing style – not beat consumers over the head with the same, worn-out sales pitch.

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Time's up.

Whether working on personal projects or for clients, I sometimes catch myself negotiating more time in order for the “creative juices” to flow. The ones with myself are the funniest and most depressing. But that's how things work, right? One can’t really rush creativity. My recollection of agency life reinforces this -- always a conflict over timing between creative and account folks. Creatives want more time and account people need magic made yesterday. “Television spots aren’t made in 2 weeks. My friends, client expectations have been set.”

Who makes these rules?

I’ve come to loathe more time. The more of it alloted to a project, the more interference incurred along the way. Whether it’s second-guessing a great idea, the client’s wife hating the color or someone beating you to the punch, time isn’t always on your side. I wouldn’t presume time can never be a blessing, though. Even a few extra hours can make a world of difference from time to time. What I’m getting at is longer timelines shouldn’t exist by default. There’s real beauty in gesture drawings and something profound can come off the top of your head if allowed.

It’s more about doing and less about waiting for the thought of what to do. In fact, many creative-types force themselves into daily exercises -- quick ones, mind you -- with the specific intent to spur on creativity. (skulls / purchases / collages) The same philosophy is applied in many cases through “shallow holes.” But sometimes we dig so many shallow holes, we find ourselves a few weeks in the hole with nothing to show for it. I’m rambling a bit, but I guess I have this idea of making stuff that’s inspired rather than well-thought-out. Does that make sense?

Gotta run -- till next time.

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WORDS WORTH REPEATING #1: Zac Efron

"I don't have a Twitter, a Facebook or anything like that. I kind of value people not  knowing where I am or what I'm doing." - Zac Efron

Marketers sometimes forget that trends aren’t unidirectional. It’s a lot like Newton’s law. When the public runs off in one direction there is usually an equal and opposite movement simultaneously taking place.

As Twitter and Facebook continue to get a lot of ink, keep your eyes open for a growing movement toward privacy and anonymity. Being un-famous, un-trackable, and un-reachable may become the most desirable thing in the world.

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WARNING: YOUR BRAND MAY INDUCE VOMITING

Okay, hopefully not vomiting. But maybe greed, arrogance or gluttony.

A recent study reveals that children are more likely to share candy with others when they see Santa’s cap. Apparently it’s a symbol that promotes the spirit of kindness and generosity. The mere site of a Toys ‘r Us logo has the opposite effect.

The best brands actually help bring out our better selves. They have a purpose beyond simply making money. And they understand the need to shift marketing efforts from a consumption-model to a contribution-model. 

Don't stop at asking yourself what you want your customer to do. Ask yourself what you think your brand can help them become.

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